DECC has published the Comprehensive Feed-in Tariff (FiT) document and at the same time, many say, put a nail in the coffin for the Solar Industry in the UK. With the FiT rate for Solar Power to be cut by more than 50%, and with a proposal that eligibility to the scheme should be linked to a minimum energy efficiency requirement - many fear that this will be the end for the industry (some businesses are already reporting that all orders post the implementation date have since been cancelled). The proposals, which are subject to consultation, would introduce a new tariff for schemes up to 4kW in size of 21p/kWh – down from the current 43.3p/kWh. Reduced rates are also proposed for schemes between 4kW and 250kW. The rates will come into force from 1 April 2012 and will apply to eligible installations on or after 12 December 2011. It seems the industry is a victim of its own success with the Government reporting that the industry is growing faster than expected and the FiT budget is insufficient to support this level of growth at current tariff levels. This shouldn't come as a surprise though. In 2008 an over generous Spanish programme also sparked an abnormally high response from investors leaving the Spanish government with a significant FiT payment obligation. When the Spanish government implemented a cap, the Spanish solar market collapsed. The Solar Industry in the UK is naturally fearful of a similar occurrence here and businesses one day after the announcement are already reporting a detrimental impact. The real issue it seems is not so much the impact on the absolute level of UK renewable generation as a consequence of this U-turn, but more likely on business and consumer confidence in Government incentive schemes and embracement of renewable ideals in general.